Finance & Economics
Finance & Economics
Fair Observer's analysis of important economic and financial issues, events and trends in global markets and the world economy.
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360° Analysis / Africa / future / Ghana / green energy / Kenya / Finance & Economics / AfricaBy Amy CalfasTen years from now Africa might be the only remaining developing region in the global race for economic growth. Amy Calfas goes in-depth in her winning essay for Fletcher School's “Africa's Turn?” conference (for background information see here). Few scholars have envisioned a day in which African security and economic prosperity were no longer dependent on a constant flow of blue helmets and aid packages. While exceptionally belated, the day has finally arrived in which African private investment has finally surpassed aid exchanges. Today, it is impossible to ignore the continent’s newly radiant economic complexion, and more astoundingly so when one considers the...
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By Shaon AhsanMongolian leaders must wisely manage the wealth coming from the sale of natural resources to ensure they do not experience the resource curse as have many countries that are abundant in natural resources. Luckily, so far, they have made an effort to keep it at bay. Positioned in between the economic powers of Russia and China, Mongolia has the fastest growing economy and is one of the most resource-rich countries in the world, but its leaders must make a concentrated effort to avoid the resource curse. With the commitment of Mongolia’s president, Tsakhiagiin Elbegdorj, to manage the resource wealth responsibly and efficiently, they may succeed in preventing it from occurring. Rise of...
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By Michael YeoMalaysia’s economy is dependent upon non-renewable energy sources, but the fuel subsidies that allow industrial growth are costly and cannot be maintained by the government. In order for industries to remain internationally competitive an alternative must be found. An intimate link exists between Malaysia’s economy and its energy supplies. Like the majority of countries in the region, Malaysia’s industries rely heavily on non-renewable supplies of fuel such as oil, coal, and gas. However, sustainable long-term economic growth in Malaysia is dependent upon a steady supply of energy. While there are abundant non-renewable energy sources in Malaysia, such resources are not...
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The year 2009, often considered the worst year of the Global Financial Crisis, saw a sharp dip and then the continuation of steady growth for most Asian economies. Yet the future of this pattern of stable growth faces threats from both regional and global issues. Background The economies of East and South East Asia are often measured against the great economic power that is China. China, although not untouched by the global economic crisis, has fared much better than the West. Although its gross domestic product (GDP) growth slowed down markedly, from 14.2% in 2007 in to 9.2% in 2009, it has not been in recession. The economic trajectories of the countries closest in proximity to China in...
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As the demand for raw materials is expected to surge over the next few decades, exporters and large multinational mining companies have expressed an increased interest in the vast untapped natural resources of Asia. However, many nations are still not ready for the influx of mass mining operations. In many cases, irresponsible mining practices and a lack of consistent government policy have caused the displacement of indigenous peoples and the destruction of many livelihoods. In recent years, the coveted living and non-living resources of The Philippines have been the center of important policy debates and bills. With an estimated value of PHP 47 trillion, these natural resources are key...
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Brazil has captured a decade of steady export growth within an emergent middle class, strengthening the domestic economy and protecting its people from stagnation in Europe and the US, as well as from the slowdown in China and India. In the midst of a slowdown, Brazil’s economy defies its own history. Since the 16th century Portuguese settlers began harvesting Brazilwood from its coastal forests, Brazil’s economy grew rapidly in a series of agricultural and mining bonanzas, but fell far when global demand for those goods shifted. A small class of wealthy elite accumulated capital and then lost it all at once during long bust cycles. Meanwhile, the ranks of the poor grew in...
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By Trevor CohenBrazil has not only taken a leading role in Latin America but continues its economic rise globally, already leaving behind well-established western economies. Background Just five years ago, the economy of the UK was more than three times larger than that of Brazil. But by 2011, the Brazilian economy had surpassed the UK as the world’s sixth largest. Over the next three years, Brazil is set to overtake France. By 2030, it is predicted that Brazil’s economy will eventually rise above Germany and Japan. In the last ten years, 40mn poor Brazilian’s have joined the middle class, the minimum wage has risen by 60%, malnutrition and infant mortality are down to 73% and 45%...
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360° Analysis / China / EU / Finance & Economics / Africa / AsiaChina’s economic relation with Africa is forcing the EU to rethink its strategy towards the continent. China and the European Union: Relations and Perceptions with Africa Sino-African trade relations are becoming stronger by the day - this is now an indisputable fact. However, because there is a discrepancy between their interests and positions, the concerned parties all view and evaluate this fact very differently. The Chinese government believes “that this new type of Sino-African strategic partnership relation is the result of the passing of the torch of traditional Sino-African friendship and, in accordance with Chinese and African basic mutual interests, conforms to...
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By Gunnar BeckThe German Constitutional Court passes a judgment to support Chancellor Merkel’s position on the European Stability Mechanism Treaty but the Bundesbank opposes European Central Bank’s unlimited bond buying programme. As I predicted in the Wall Street Journal in July,the German Constitutional Court last week deferred to the German government and approved the European Stability Mechanism (ESM) Treaty subject to minor qualifications. Since the passing of the judgment, markets and politicians throughout the euro zone have been in a jubilant mood. Even the German ambassador in London let down his guard when, in an interview with The Guardian newspaper, he boasted that there...